UP’s Rocker: ‘Here’s the Truth.’ BNSF, CPKC: ‘Baseless Falsehoods’

Union Pacific Executive Vice President Marketing and Sales Kenny Rocker (David C. Lester photo)

NEW YORK –– Union Pacific Executive Vice President Marketing and Sales Kenny Rocker recently sent a letter to customers, “Let’s Talk Facts: It Doesn’t Surprise Me the Opposition is Nervous,” accusing certain opponents of the railroad’s proposed acquisition of Norfolk Southern—namely, BNSF and CPKC—of threatening retaliation against “customers whose networks span multiple Class I railroads.” BNSF and CPKC said Rocker’s claims are “baseless” and “categorically untrue."

“Over the past several months, I’ve heard from many of you not just about what you’re being told by those who stand to lose regarding our proposed combination with Norfolk Southern, but about the pressure you’re facing for simply engaging in the conversation,” Rocker wrote. “Every week I’m with customers whose networks span multiple Class I railroads and, despite seeing clear benefits at their Union Pacific-served facilities, are remaining silent on the merger due to concerns about retaliation elsewhere. Several have told me directly that after voicing early support, they faced real backlash from BNSF and CPKC. This type of pressure is crossing the line. If you’re experiencing something similar, we encourage you to share that with us and the STB directly. Transparency matters, and no customer should feel constrained when speaking about what is best for their business.”

Rocker called merger opponents “competitors who stand to lose when we become faster, more competitive and easier to do business with … A competing railroad recently told one of our partners the deal won’t be approved. Consider who benefits from planting that doubt. Railroads across the U.S. and Canada have come out vocally against the merger because they would have to compete, putting pressure on their margins. Here’s the truth. The STB accepted our application as complete, a meaningful milestone toward a more competitive U.S. rail network. They’ve asked for additional detail in a few areas, and we welcome the chance to further strengthen the record. We’ve already submitted part of what they requested, and the rest will follow before the end of the month.”

The proposed UP-NS combination is “the most data-rich application [STB has] evaluated,” Rocker added. “The STB’s questions reflect diligence, not doubt.” He called opponent claims of UP and NS creating a monopoly “misleading,” noting that railroads “carry only 27% of total ton-miles in the U.S. freight market, and we compete every day with trucks, barges, ships, pipelines and air. That competition will continue after the merger. Even within rail, the combined network would carry roughly 39% of rail ton-miles (2023 reviewed data), well below the figures the opposition likes to cite. That would make the combined entity the same size as BNSF, and no one has said BNSF is too big to fail.”

“The allegation runs contrary to BNSF’s culture and values,” BNSF Vice President Corporate Relations Zak Anderson responded. “It’s disappointing to see UP continue their baseless claims and rhetoric to distract from the central question before them—how consolidating 50% of all U.S. rail freight in one company enhances competition and doesn’t raise affordability issues for rail customers and the American consumer.”

“It’s another UP falsehood, and any suggestion we are threatening our customers or any stakeholder is categorically untrue,” said CPKC Assistant Vice President Communications and Media Relations Patrick Waldron. “Throughout this process, we have been very clear in our position. We have encouraged rail customers and all stakeholders to get involved and make their voices heard. As we have also repeatedly said, it is every stakeholder’s individual choice. What is really happening? A wide range of stakeholders across the economy and country are learning the facts and standing up to voice their opposition to this combination that creates a behemoth of a railroad. We have also always maintained that this is not a done deal and that the Surface Transportation Board will conduct a thorough review, as we are already seeing.”